'5 Billion Club' Kwak Sang-do, Prosecutor's Investigation on the 25th... 8 Months After First Trial Not Guilty Verdict

Former People Power Party lawmaker Kwak Sang-do, suspected of being part of the "5 Billion Won Club," will appear before the prosecution on the 25th.

Former People Power Party lawmaker Kwak Sang-do, accused of receiving bribes from the Daejang-dong group under the pretext of his son's severance pay. Photo by Kang Jin-hyung aymsdream@

According to the legal community on the 23rd, the Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kang Baek-shin) plans to summon former lawmaker Kwak on the morning of the 25th for questioning as a suspect. This comes about eight months after the first trial court acquitted Kwak of the main charges in February.

Kwak is accused of receiving a bribe of 5 billion won (2.5 billion won after taxes, etc.) under the name of severance pay through his son, Kwak Byung-chae, who worked at Hwacheon Daeyu Asset Management (charges include bribery under the Act on the Aggravated Punishment of Specific Crimes and violation of the Act on the Regulation of Concealment of Criminal Proceeds).

The prosecution believes that when Hana Bank tried to withdraw from the Seongnam Eutteul consortium, formed by private contractors involved in the Daejang-dong project, putting the consortium at risk of collapse, they asked former lawmaker Kwak to exert influence, and in return, Kwak received bribes through his son Byung-chae.

Accordingly, the prosecution indicted Kwak last year while in detention. However, the first trial court ruled that "it is difficult to conclude that there was a crisis of Hana Bank withdrawing from the consortium, and it is hard to see that Kwak actually exerted influence on Hana Financial Group," acquitting Kwak of charges including solicitation and bribery.

Regarding the 5 billion won severance pay, the court stated that "although it is unusually excessive by social standards," it was "not proven beyond reasonable doubt that Kwak Sang-do directly received the benefits that Kwak Byung-chae, who is married and financially independent, obtained from Hwacheon Daeyu."

The prosecution previously summoned Kwak's son Byung-chae for questioning in July. Based on the results of the upcoming investigation of former lawmaker Kwak, the prosecution is expected to decide on the disposition of the father and son.